Singles’ Day (also termed 11.11 Global Shopping Festival by Alibaba) is held annually on November 11 and is the largest global online shopping festival. In the lead-up to this year’s event, our Brand Journeys to Singles’ Day 2020 series profiles 11 brands that are participating in Singles’ Day, and we explore each brand’s journey on Alibaba’s cross-border e-commerce platform, Tmall Global. In this report, we spotlight Shivelight, a US beverage brand.

Shivelight: Brand Background

The Shivelight Premium Beverage Company produces Shrub Drinks, traditional “drinking vinegar” beverages from its base in Missoula, Montana in the US. The family-owned business focuses on quality and sustainability in sourcing ingredients to make the non-alcoholic drinks, which are based on a combination of honey, fruit and vinegar. The beverages typically have a sweet and sour taste, with herby and spicy variations. The brand launched its Shrub beverages in 2017, and its products are now sold in over 100 grocery locations across the American Northwest. The drink has a rich history of use as a medicinal cordial and links to fruit preservation using vinegar that became popular in the US colonial period. Reflecting modern culinary demand for fresh and original flavors, Shivelight’s Shrub Drinks have gained popularity as a soft drink and a base for craft cocktails in the US.  

Brand Spotlight

Shivelight cites its high-quality standards as its key differentiator, from sourcing to preserving and processing its ingredients. The apple cider vinegar used by the brand is preserved without adding stabilizers or preservatives, capitalizing on its reputed health benefits. The brand has four flagship Shrub Drink flavors: Bitterroot Apple & Cinnamon, Flathead Cherry, Ginger Honey and Huckleberry. Shivelight’s focus on natural ingredients won the favor of the panelists at the Go Global 11.11 Pitch Fest, hosted by Tmall Global on September 15, 2020—giving the brand the opportunity to sell on Alibaba’s e-commerce platform this Singles’ Day. Chinese Demand for Healthy Soft Drinks Against the backdrop of the Covid-19 pandemic, China’s National Bureau of Statistics indicates that the beverage sector has seen some of the strongest retail recovery as of August 14, 2020, with a 10.7% increase in retail sales compared to July 2020—indicating opportunities for beverage brands such as Shivelight in the China market. The soft-drink retail market in particular is booming in China. It saw revenue of ¥991.4 billion ($142 billion) in 2019, having grown at a CAGR of 5.9% from 2014 to 2019. Business consulting firm Frost & Sullivan projects that the market will reach revenues of ¥1,323 billion ($190 billion) in 2024. Moreover, Statista indicates that Chinese consumers prefer drinks with a health function or perceived detox benefits, over simple soft drinks. Market research firm Daxue Consulting highlights that Chinese consumer preferences have shifted away from carbonated beverages since 2000 and have since been centered on beverages with a perceived health benefit such as tea, fresh juices and protein drinks. Health-related beverages and drinks featuring natural fruit and vegetable ingredients are driving demand in the soft-drink market in China, according to Euromonitor International. However, this niche of the market is not yet established in China, with few brands serving demand for natural, healthy beverages. The China market therefore presents an opportunity for Shivelight to promote its functional beverage offering and the natural ingredients of its Shrub Drinks. We anticipate that the brand’s sweet and sour vinegar-based drinks will also largely cater to Chinese consumer tastes, given the prominence of sweet and sour flavors in Chinese cuisine. Participating in the upcoming Singles’ Day shopping festival through the Tmall Global platform will enable Shivelight to significantly expand its potential customer base and build its global business. [caption id="attachment_118678" align="aligncenter" width="700"] Shivelight uses local and natural ingredients to make its Shrubs beverage
Source: Company website [/caption]     Source for all Euromonitor data: Euromonitor International Limited 2020 © All rights reserved